By the time a transaction reaches this stage, a lot has already happened:
Offer was written and accepted. Buyer protections and seller protections were negotiated during the Execution Round. Financing is underway, and both sides are moving toward closing.
But now the transaction enters one of the most revealing and sometimes stressful parts of the process.
Round 3: Resolution.
This is the stage where the buyer truly learns about the condition of the property, and where both sides must decide how they will move forward together.
In tournament terms, this round features the matchup between:
- Inspection Discoveries vs Repair Negotiations
- The Buyer’s Side: Inspection Discoveries
Home inspections provide buyers with an opportunity to better understand the home they are purchasing. Even well-maintained homes can reveal surprises once inspectors begin evaluating major systems and structural components.
Inspection reports may uncover things such as:
- Roofing wear or damage
- Electrical or plumbing issues
- Heating or cooling system concerns
- Structural observations
- Safety or maintenance items
For buyers and their brokers, this stage is about understanding risk and making informed decisions.
The buyer may decide to:
- Request repairs
- Ask for a credit toward closing costs
- Renegotiate certain terms of the agreement
- Accept the property as-is
- Or in some cases, withdraw from the transaction depending on contract terms
This is a normal and expected part of the process. Nearly every transaction involves some level of discussion once the inspection report is received.
The Seller’s Side: Repair Negotiations
Once inspection results arrive, the seller must determine how they want to respond.
From the seller’s perspective, the goal is to keep the transaction moving forward while protecting the value of the sale.
Possible responses might include:
- Agreeing to complete specific repairs
- Offering a credit instead of repairs
- Negotiating which items will be addressed
- Declining certain requests
This is where brokers often become skilled negotiators, helping both parties move toward an agreement that keeps the deal alive.
Because ultimately, both sides usually share the same goal: A successful closing.
What Land Title Is Doing Behind the Scenes
While buyers and sellers are reviewing inspection reports and negotiating repairs, title and escrow are quietly keeping the transaction organized and on track.
This stage involves a significant amount of behind-the-scenes coordination.
Escrow may be:
- Tracking contingency deadlines
- Receiving and documenting signed addenda or amendments
- Updating settlement figures when credits or price adjustments occur
- Communicating contract updates to the lender
- Monitoring the overall timeline to keep the transaction moving forward
At the same time, the title department continues its work reviewing the property’s ownership history and preparing for a clean transfer of title at closing.
Title professionals may be:
- Reviewing the preliminary title report with the transaction in mind
- Identifying potential liens or encumbrances that must be cleared
- Working with lenders or other parties to resolve title issues
- Preparing for final title policy issuance once the sale closes
Even though inspection negotiations may feel like the center of the transaction, the title and escrow teams are already working to ensure that when the time comes, the property can transfer free and clear of unexpected issues.
How Brokers Help Keep This Round Moving
This stage can move quickly when everyone involved communicates clearly.
Both listing brokers and selling brokers can help escrow keep the file organized by providing:
- Signed inspection responses and repair agreements
- Addenda reflecting negotiated credits or price changes
- Notice of contingency removals or waivers
- Timeline extensions if negotiations affect closing dates
Because every change to the agreement must be properly documented, escrow relies on receiving these signed documents promptly so settlement figures and lender instructions remain accurate.
The Winner of Round 3: Compromise!
So who wins this round? The winner is Compromise!
Inspection discoveries help buyers understand the property, while repair negotiations help buyers and sellers find common ground.
When both sides reach a workable agreement, the transaction moves forward stronger and with greater clarity.
Once those agreements are documented, escrow updates the file and prepares the next phase of the transaction.
Because now the tournament moves into its final stage……